_____ Paxco has two reportable operating segments. For 2006, the following segment information is provided:
What is each segment's reportable profit for 2006 assuming that the measure of profit used by the CODMs to manage the segments is (1) not adjusted for unrealized intersegment profit and (2) adjusted for unrealized intrasegment profit?

Question

_____ Paxco has two reportable operating segments. For 2006, the following segment information is provided:
  What is each segment's reportable profit for 2006 assuming that the measure of profit used by the CODMs to manage the segments is (1) not adjusted for unrealized intersegment profit and (2) adjusted for unrealized intrasegment profit?

Quizplus · Accepted Answer

Segment A: $6000,000-no adjustment needed;
Segment B: $270,000-($300,000 - $30,000 of unrealized intrasegment profit at 12/31/06)

_____ Paxco Has Two Reportable Operating Segments